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A G7 tax deal must not risk poorer states competitiveness

  • By Piotr Arak

The G7 and probably the G20 countrieswill not have issueswith accepting a proposal for a minimum corporate tax rate of 15 per cent.

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Global Tax Deal Holdouts Face Squeeze Under Biden Administration Plan

  • By Richard Rubin

Some countries might try to stay outside the emerging agreement to impose a global minimum tax on corporations so those nations can use low tax rates to attract businesses. The Biden administration aims to deflect those attemptswith a powerful Shield. The SHIELD is the administration's tax threat to the rest of theworld, the flip side of Treasury Secretary Janet Yellen's cooperative diplomacy. It is an aggressiveweapon and one that mirrors how the U.S. changed its tax laws in 2010 to prod foreign banks into identifying Americans' offshore accounts to the Internal Revenue Service.

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Papering Over SHIELD

  • By Lee A. Sheppard

Lee A. Sheppard considers the tax data that governmentswould need to mandate be created in order to implement the OECD's pillar 2 and the Biden administration's stopping harmful inversions and ending low-tax developments proposal.

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Carbon Taxes: The Next Shareholder Pressure Area?

  • By Nana Ama Sarfo

Nana Ama Sarfo looks at how climate change and carbon taxation is becoming an emerging focus area for corporate shareholders.

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France Says Minimum Tax Must Capture as Many Sectors as Possible

  • By William Horobin

France is pushing for a global agreement on minimum corporate tax thatwould include China and cover as many sectors as possible, French Finance Minister Bruno Le Maire said. After a Group of Seven meeting lastweek made progress on how to share out rights to tax multinationals, attention is now turning to the details of how to apply a floor of at least 15% for large companies. Rich nations are concerned that China may seek exemptions for certain sectors as the negotiations go into the next phase.

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Tax Games, the G-7 Agreement, and the Biden Budget

  • By Mindy Herzfeld

Mindy Herzfeld notes that tax planning occurs across party lines and points out tax gaming opportunities in recent Biden administration proposals and committed to as part of the G-7 agreed-on reform of international tax rules.

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Siemens at Risk of Capture in Digital Tax Rules Targeting Amazon

  • By Hamza Ali

German conglomerate Siemens AG could be caught by rules designed to net Amazon.com inc. into the OECD's digital tax overhaul proposal, a company executive saidwednesday. The Organization for Economic Cooperation and Development isworkingwith nearly 140 countries to rewrite how multinationals, particularly large tech groups, are taxed so that a portion of their profits are reallocated to the marketswhere they make sales. Earlier this year the U.S. proposed that these changes should be limited to the 100 largest, most profitable companies.

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EU Parliamentary Committees Approve Public CbC Reporting Deal

  • By Jean Comte

The European Parliament's economic affairs and legal affairs committees on June 14 approved an informal deal on public country-by-country reporting by multinational companies thatwas struck June 1with representatives of the EU member states.

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The G7 Finance Ministers Announcement on Pillars One and Two: Does It Matter?

  • By Jeff VanderWolk

On June 5, 2021, the finance ministers of the G7 (Canada, France, Germany, Italy, Japan, the U.K., and the U.S.) announced their support for a global minimum tax of at least 15% and for the reallocation of 20% of the profits above a 10% profit margin for large multinationals. Jeff VanderWolk of Squire Patton Boggs considers the implications.

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Countries Closer Than Ever to Tax Reform Deal, Saint-Amans Says

  • By Stephanie Soong Johnston

Governments are on the cusp of a multilateral agreement on a two-pillar international tax reform plan, part ofwhich is expected to cover Amazon, contrary to badly informed public debate, the OECD's tax chief said.

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Yellen: Digital Service Taxes Endanger Prospects for Global Deal

  • By Colin Wilhelm

U.S. Treasury Secretary Janet Yellen told a congressional panelwednesday that digital services taxes stand in theway of international efforts to establish a global minimum tax, and she reiterated that the Biden administration could raise tariffs on countries that leave them in place.She also told the Senate Finance Committee that she expected all European Union countries, including Ireland, to sign onto a global minimum tax agreement.

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U.K. Treasury Rejects Criticism of Pillar 2 Stance

  • By Andrew Goodall

The United Kingdom has not been lukewarm about a global minimum tax rate, but a 15 percent ratewould allow countries to "use corporation tax as a lever" to support their objectives, ministers said.

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Digital Taxes to Be Phased Out After OECD Deal Implemented

  • By Hamza Ali

Unilateral digital services taxeswon't be removed immediately even if an agreement to remove them is reached at a July Group of 20 meeting, a senior Italian official said. There needs to be coordination between the time the global, so-called Pillar One solution is applied and the time the unilateral taxes are removed, Fabrizia Lapecorella, director general of finance in the Italian Ministry of Economy and Finance, said during a pre-taped interview for Bloomberg Tax's virtual Leadership Forum onwednesday. Coordinationwill be necessary at the the technical level, she added, noting that beyond the political attention therewould be legislative constraints ahead.

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France Plans Diplomatic Offensive to Help Secure Global Tax Deal

  • By William Horobin

French Finance Minister Bruno Le Mairewill hold talkswith officials from Ireland, Poland, Russia, India and China as he seeks to overcome any potential opposition to an agreement on international taxation in time for a Group of 20 meeting in July. The gathering in Venice has gained more importance after the Group of Seven advanced economies overcame years of division this month to commit to an outline on changes to corporate tax rules and rates. But about 140 countries in total have to sign off on the details, and some have been uneasy over how changes could impact their economies and largest companies.

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EU Aims to Tackle Debt-Equity Bias in Corporate Taxation

  • By Kiarra M. Strocko

The European Commission plans to introduce a proposal for a directive thatwould mitigate tax-induced debt-equity bias by offering a tax allowance for companies that pursue equity financing.

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Tech Firms Urge Canada to Drop Digital Services Tax Plan

  • By James Munson

Tech firms are urging Canada to abandon a proposed 3% digital services tax on tech companies until there is agreement at a global level to overhaul tax rules. Major industry associations filed submissions thisweekwith Canada's Department of Finance during a consultation for a tax thatwould target companieswith 750 million euros ($890 million) or more in global revenues and C$20 million ($16 million) or more in domestic revenues. The taxwould be in force Jan. 1, 2022. "We encourage Canada to reconsider discriminatory tax measures that depart from norms and target specific U.S. companies," Arthur D. Sidney, the Computer and Communications Industry Association's vice president of public policy, said in a filing Friday.

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No Space for DSTs to Hit Firms Outside Scope of New Tax Rules

  • By Stephanie Soong Johnston

Negotiators are crafting a coordinated end to digital services taxes once pillar 1 of a global tax reform plan is implemented, but countries hoping to apply DSTs to out-of-scope companieswill be out of luck.

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Race for Global Tax Revolution Faces Hurdles in Last Stretch

  • By Isabel Gottlieb and William Horobin

Talks in comingweeks between more than 100 governments before a Group of 20 meeting in Julywill build on the outlines of a deal earlier this month by Group of Seven finance ministers. Despite their breakthroughs on a minimum global corporate tax rate and a shift in philosophy allowing one country to apply levies to profits of another's national champions, multiple technical details remain unresolved.

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France Vows to Sway Reluctant Countries on New Tax Rules

  • By Elodie Lamer

French Finance Minister Bruno Le Maire said hewill have more conversationswith reluctant countries to ensure agreements on new global tax rules are reached at the upcoming G-20 meeting and among EU member states.

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A Pact to Tax the World


The Group of 7 finance chiefs sealedwhat they called a "historic global tax agreement" at a summit meeting in Britain thisweekend.

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Multinationals shrug off G7 tax assault

  • By Richard Waters
  • By Emma Agyemang

G7 Tax deal targets the most profitable global companies.

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Big Tech will pay less tax in UK under G7 plan, says think-tank

  • By Emma Agyemang

Big Techwill pay less tax in the UK under a deal agreed at the G7 than they currently pay under the country's digital service tax, according to calculations by a think-tank.

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G20 could improve on one-sided global tax reform

  • By Alex Cobham

G20 members have the opportunity to improve upon the one-sided deal proposed by a group of rich countries, and set the basis for a better deal that can stick.

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Governments should tax cash flow, not global corporate income

  • By Glenn Hubbard

Glenn Hubbard discusses how to achieve a better global tax system outside of GILTI.

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Switzerland plans subsidies to offset G7 corporate tax plan

  • By Sam Jones

Swiss-based multinationals such as commodities trader Glencorewill receive subsidies and other incentives under plans Switzerland is drawing up to maintain its competitive tax rates, even as the country prepares to sign-up to the G7's new plan for a global minimum tax on big businesses.

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Irish consensus on 12.5% corporate tax shifts after G7 global deal

  • By Laura Noonan

Ireland's second biggest opposition party has backed a "small increase" in the country's corporate tax rate, in a sign that Dublin's longstanding political consensus on multinationals is cracking after the G7 agreed a plan for global taxation reform.

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Questions Surround Green Book Deduction Disallowance Provision

  • By Andrew Velarde

A surprise green book provision that disallows deductions for exempt or preferentially taxed income may not be gathering the most headlines, but it still is getting interest from practitionerswondering about its significance.

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Wyden Predicts Long Road Ahead for Global Tax Agreement

  • By Jad Chamseddine and Doug Sword

Senate Finance Committee Chair Ronwyden, D-Ore., expects heavy lifting domestically and internationally to implement a global minimum tax after an accordwas struck by the G-7 countries.

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G-7-Backed Minimum Tax Rate Lacks Ambition, Global Union Says

  • By Stephanie Soong Johnston

The 15 percent global minimum tax floor that G-7 finance ministers have agreed to is a good first step, but the G-20 must show leadership by pushing that rate higher, according to an internationalworkers' union.

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OECD Pillar 2 Discussion Could Inform U.S. Book Income Minimum Tax

  • By Andrew Velarde

OECD discussions on a minimum tax could influence the U.S. Treasury's 15 percent minimum tax on book earningswhen it comes time to flesh out the green book proposal.

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U.S. Pillar 1 Tax Pitch Is Largely Revenue Neutral, Yellen Says

  • By Stephanie Soong Johnston

Treasury's "comprehensive scoping" proposal for pillar 1 of a two-pillar OECD-led global tax reform projectwon't hurt the U.S. purse, Treasury Secretary Janet Yellen told the Senate's top Republican taxwriter.

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France May See Billions Under Global Tax Reform Deal, Le Maire Says

  • By Stephanie Soong Johnston

France expects to raise billions of euros under a two-pillar global tax reform plan, but many issues ÔøΩ including the taxation of Amazon ÔøΩ must be resolved in negotiations first, French Finance Minister Bruno Le Maire said.

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EU Ambassadors Approve Public CbC Reporting Deal

  • By Jean Comte

Representatives of the 27 EU member states have approved the deal on a public country-by-country reporting directive thatwas informally struckwith representatives of the European Parliament June 1.

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Biden and Johnson Back 15 Percent Global Minimum Tax Floor

  • By Stephanie Soong Johnston

Support for a proposed global tax overhaul plan got another political boost after the U.S. and U.K. leaders backed key elements of the project, including a global minimum tax rate of at least 15 percent.

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U.S. to Levy Tariffs Over Digital-Service Tax, but Suspend Implementation

  • By Yuka Hayashi and Paul Hannon

The U.S. saidwednesday itwill impose tariffs on the U.K. and five other countries in response to their taxes on U.S. technology companies, butwill suspend the levies for six months as it seeks to negotiate an international resolution. U.S. trade representative Katherine Tai said investigations determined that tariffswere justified because of digital-services taxes imposed on U.S. companies by the U.K., Austria, India, Italy, Spain and Turkey. She said the tariffswould be suspendedwhile the U.S. focuses on finding "a multilateral solution to a range of key issues related to international taxation."

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Corporate Taxes Will Rise One Way or Another

  • By Rochelle Toplensky

Over theweekend, finance ministers from the Group of Seven leading nations agreed on the outlines of a global tax deal, including a minimum tax of at least 15% and some reallocation of taxation rights. It raises the odds of a global accord later this summer that could cost multinational giants an additional $50 billion to $100 billion annually, according to the Organization for Economic Cooperation and Development. Plenty of obstacles remain on the path to an international agreement and the history of tax reform might tempt some to assume nothingwill change. Yet investors should prepare for higher tax billswhatever happens to the latest plan. If it fails to bite, digital service taxeswill instead.

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The G-7s Global Tax Deal Faces a China Test

  • By James T. Areddy

An endeavor by Group of Seven nations to set minimum global tax rates for big companies presents a rare opportunity to satisfy objectives of both the U.S. and China. Still, Beijing's support for the proposal isn't a foregone conclusion. The proposals are expected to be on the agenda next month at a ministerial meeting of the Group of 20, a consensus-driven organizationwhich includes China. Under the proposals, nationswould agree to adjust their regulations to tax the biggest companies based onwhere they operate and set new thresholds, including a 15% minimum tax rate. The dealwould appear to have few direct implications for the tax system in China,which already imposes rates above thresholds proposed and has stepped up enforcement of tax rules at home. Changes in global tax policy could have a bigger effect in Hong Kong, a financial center that boasts low tax rates, aswell as the gambling enclave MacauÔøΩboth Chinese territories.

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A G-7 Deal on a Global Minimum Tax for Companies Faces Hurdles

  • By Richard Rubin
  • By Paul Hannon

An agreement bywealthy countries to impose minimum taxes on multinational companies faces a rocky path to implementation,with many governments likely towait and seewhat others, especially a divided U.S. Congress,will do. Treasury Secretary Janet Yellen hailed the deal, reached by finance ministers of the Group of Seven leading nations over theweekend in London. She called it a return to multilateralism and a sign that countries can tighten the tax net on profitable firms to fund their governments.

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Will the G-7 Tax Deal Bite? Only Markets Know: Opinion

  • By David Fickling

There's a simple test forwhether international moves to crack down on tax avoidance announced over theweekend are going to be effective: Check the stock market. After all, at their core, the measures announced by the Group of Seven nations represent a plan to reduce the profits of major multinational companies. For a company like NVidia Corp.,which paid an effective tax rate of 2.63% over the most recent 12-month period, news that theworld's largest economies are planning to implement a tax floor of 15% ought to represent a substantial hit to future earnings. There's no sign that's happening yet. If anything, the renewed likelihood of a global tax agreement since the Organization for Economic Cooperation and Development came outwith detailed plans for such a deal last October and President Joe Bidenwas elected the following month has only increased the valuation premium for companies that, on paper,will lose out.

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Chinas Likely Bid for Tax Exemption Poses Risk to Global Accord


Rich nations are bracing for China to seek exemptions from a global minimum corporate tax, a potential stumbling block for governments racing to reachwider international consensus on the plan next month. Some officials see China as not easily signing on to the global minimum tax rate of at least 15% endorsed by Group of Seven finance ministers lastweek, people familiarwith the discussions said on condition of anonymity because of the sensitivity of the talks. China has a basic corporate tax rate of 25% for most companies, but reductions for high-tech sectors and for investment in research and development mean effective rates can fall below 15%. Beijingwillwant to retain tax incentives that it sees as key for its economic development, especially in advanced technologies.

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Ireland to Defend Legitimate Tax Competition, Donohoe Says

  • By Morwenna Coniam

Irelandwill make the case for the role of legitimate tax competition, Irish Finance Minister Paschal Donohoe said after the Group of Seven advanced economies agreed on a minimum global corporate tax rate of at least 15%. "Today is an important sign post," Donohoe said. "It does have consequences for the future of corporate tax policy across theworld, but in the process that is to come, I'll be making the case for the role of legitimate tax competition," he told reporters in London, adding that hewill be engaging "constructively"with the Organization for Economic Cooperation and Development and U.S. Treasury Secretary Janet Yellen. Any international agreement on how companies are taxedwill need to meet the needs of "small and large countries, developed and developing," Donohoe earlier said in a tweet, noting that there are 139 countries in the OECD.

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Bidens Minimum Foreign Tax a Tougher Sell in Congress After G-7

  • By Laura Davison and Anna Edgerton

Treasury Secretary Janet Yellen'sweekend dealwith G-7 counterparts on a framework for a global minimum corporate tax has made for a tougher sales job for President Joe Biden's proposed changes to U.S. tax law.

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Plans for a Global Minimum Tax Revolution, Explained: QuickTake

  • By Laura Davison and Isabel Gottlieb

Multinational companies have long used creative but legalways to shrink their tax bills. One is to book profits from customers in places like Boston and Berlin as if they came from, say, Bermuda,which has no corporate income tax. Theworld's richest economies have agreed to jointly pursue a revamp of the global tax system thatwould undercut the effectiveness of such a strategy.

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Swiss Note G-7 Tax Plan, Want to Stay Attractive for Business

  • By Catherine Bosley

Switzerland said the countrywas committed to remaining an attractive business hub in light of a landmark deal by the Group of Seven rich nations that could help countries collect more taxes from big companies. "Switzerland has taken note of this expected declaration of intent by the G7," the State Secretariat for International Finance said in an email. "For Switzerland, the focus is on the overall package of competitive framework conditions for its own location. Eitherway, Switzerlandwill take the necessary measures to continue to be a highly attractive business location."

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Big Tech Watches Tide Turning on Taxes After Its Years of Plenty

  • By Nico Grant and William Horobin

A tax deal between theworld's richest countries brings global governments a step closer to clawing back some power from technology giants that have used century-old regimes to build upwealth eclipsing the economies of most nations.while aweekend accord struck by Group of Seven finance ministers aims to close the net around all major multinationals, the tech industry is particularly adept at taking advantage of the current system. That's because its main assets -- software code, patents and other intellectual property -- are relatively easy to maneuver compared to physical assets.

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Spain Moving Ahead on Digital Tax Despite Global Rewrite Effort

  • By Sam Edwards

Spain is pushing aheadwith its unilateral digital services tax, but it may shelve the measure if negotiations to reform international taxation are successful, a Finance Ministry spokesman said. The government sees theweekend G7 agreement as an important step, but itwon't change its digital tax plans at such an early stage of discussions, the spokesman said. "Nowwewill have to see how the plan develops in the G20 and the OECD," he added.

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Le Maire Says Global Tax Deal Must Apply to Amazon, Tech Giants

  • By Tara Patel

French Finance Minister Bruno Le Maire said Amazon.com and other tech giants must fallwithin scope of international tax plan. In an interview on RMC, Minister Le Maire also mentioned, "Amazon has to be in it,wewon't have a minimal tax on companies of at least 15% so that the biggest digital companies like Amazon are let off, Francewill fight so it's there." Part of Amazon's business like deliveries don't generate enough profit to qualify,while other operations like for the cloud are very profitable; "The solution is to divide this into segments and taxwhat is very profitable," he said.

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Finance Leaders Reach Global Tax Deal Aimed at Ending Profit Shifting

  • By Alan Rappeport

The Group of 7 nations agreed to back a new global minimum tax rate that companieswould have to pay regardless ofwhere they are based.

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Yellen Aims to Win Support for Global Tax Deal

  • By Alan Rappeport and Liz Alderman

The Biden administration is trying to persuade other nations to approve a global minimum tax as itworks to curb profit shifting and raise corporate taxes in the United States.

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G7 tax deal is starting point on road to global reform

  • By Chris Giles and Delphine Strauss

The tax deal agreed by theworld's leading advanced nations thisweekend is the first substantive proof of revived international co-operation since President Joe Biden brought the US back to the negotiating table. Yet there is still a long road ahead before it can be implemented.

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